CNBC Report: 'Investors' Dumping Gold To Buy Bitcoin
giorgio11
Posts: 3,905 ✭✭✭✭✭
Interesting report on CNBC this morning that parallels some other thoughts I have heard recently. Although I would call them "speculators" rather than "investors," some analysts have argued (Melissa Lee this morning as well) that bitcoin has some of the same characteristics as gold back in the Gold Rush days. Uncertain value, a mass mania, a store of value that spurs new technologies, expensive to mine, etc. Obviously there are a lot of differences as well. The blockchain technology that enables bitcoin trading has, apparently, a lot of other applications as well in finance, medicine, that are separate from bitcoin. At any rate, I find it interesting that gold is slumping as bitcoin is roaring.
I have a good friend who is a professonal investor. I wouldn't even call him a day trader, because that implies (to me) a bunch of losers. He is successful. He has also made a tidy profit in bitcoin. I have stayed away from bitcoin, but I must confess as a seasoned investor myself (and being 25 years older than my friend), I am starting to explore some of the companies in the blockchain market space.
What say you? Even as I speak, Jim Cramer and the other Squawk Box panelists are talking about bitcoin as a replacement for gold.
Kind regards,
George
Comments
Newly opened Bitcoin futures market will make or break the future of bitcoin. First of the year we'll know.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Blockchain technology behind all cryptos is the world game changer. Lots of new companies that implement this are coming online everyday (and the majority are coming online next year) that offers products and services based on cryptocurrencies and tokens (tokens are way the company monetize their platform now in exchange for goods and services later on what they will offer). Tech services, invoice factoring, voting, accounting, lending, credit reporting, advertising, honest stock exchange orders and trades, audit trails, etc. You name it and a company is working on it now with blockchain in the background, and a lot of companies will come in the future.
Some companies to watch that I'm invested in are: Populous (PPT), SALTlending (SALT), Veritaseum (VERI), AdEx (AdEx), Paypie (PPP).
These are going to be huge.
Too many positive BST transactions with too many members to list.
creative destruction , good news for us long term stackers , metals are on sale
Yep.... Might be time (soon...not yet) to add to stacks... I cannot predict the future, however, I will say, that gold will always (always being open to speculation) be a vehicle of value. I do not see bitcoin appreciating in value exponentially.... it is currently a major speculation - and yes, with associated profit. I believe it will eventually change to a stable form (I have no idea what that will look like) if it survives. Cheers, RickO
The thing about gold is, it's physical (to hard metal guys), not virtual, as Warren Buffett is fond of saying. Sure, it stores value (so do stocks, although I'm well aware of the differences; one of which is, many stocks pay dividends), but it pays no dividends, and is only worth what someone else is willing to pay for it (and I guess that applies to lots of equities and collectibles as well). Farmland, you can plant 100 crops in 100 years and reap the bounty thereof. A 100-oz block of gold in 100 years will still just be a 100-oz block of gold. It will be interesting to see if bitcoin or gold ends up over the long term being the more volatile.
@derryb why "first of the year" for bitcoin futures?
@Ricko does gold hold some kind of special attributes regarding a "vehicle of value" that silver, other PMs, commodities, equities do not?
@guitarwes thanks for sharing those stock names. Did you see the company still listed in the healthcare industry (I guess a struggling biotech) that changed its name to Riot Blockchain and now calls itself a disruptor? Rather a blatantly cynical move, but an interesting company I'm also looking into.
Kind regards to all,
George
We will have a better idea of what affect the futures market has on the price of bitcoin once the fury of speculation dies down. We will know if the FED hiked rates in December. Gold should suffer if they do. We will have a better idea on the upcoming issue of bitcoin ETFs.
It is my opinion that PM futures and ETFs have had a negative affect on PMs, will bitcoin be the same?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
As long as it leaves tracks and the IRS wants its cut, what advantage does it have over anything else?
Just be sure that bitcoin won't turn around and bite ya.
In my opinion, investors is the new speculators. It's ok to take a bit of capital on a flyer, as long as you understand that's what it is. If you invested/speculated $1000 in Bitcoin five years ago and still have it, I would agree that it is now an investment, and a pretty nice one at that. However, if you are getting into Bitcoin for the first time today, I wouldn't call that an investment per se.
@giorgio11 .... Not sure of 'special value'...however, it has always been valued above silver and the other metals are not generally (that means by the public sector) considered viable currency such as gold and silver.
Gold coin is always highly liquid in the general public sector. Cheers, RickO
You might end up calling it sonofabitchcoin.
@derryb @ricko thanks for the clarifications! And yes @mvs7 it is a matter of semantics, your money is at risk either way.
Kind regards,
George
Totally agree. It's kind of like when I play roulette with friends, and I always tell people to invest in Red. Double your money quick! I've made a lot of money with Red.
Surprising that gold has held up as well as it has. Tells me that the gold money is pretty much sticking with gold. Will probably see a sharp decline here soon if FED does raise rates. Gambled on some more DUST last week in hopes rates do rise. Early bird gets the worm or the worm droppings.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
when I hear "everyday people" talking about a good investment, I think "Run, Forrest, Run"
I may be wrong.
What would an EMP do to bitcoin?
Great news for metals indeed! Bargain prices, and when the bitbubble pops, the metals will rise yet again.
Bitcoin isn't for investing in. It's for buying stuff with. Who's buying stuff with it ?
oink oink
There is just not enough room at the trough
Experience the World through Numismatics...it's more than you can imagine.
You mean "when the metals stop being manipulated, they will rise again".
Too many positive BST transactions with too many members to list.
Plenty of people, ask Overstock.com for one.
When's the last time you bought something with a gold eagle?
Too many positive BST transactions with too many members to list.
I pay fiat cash for gold eagles. Usually I use a check drawn off my account..., but I'm old school.
I use inflationary fiat to buy deflationary cryptocurrency. I'm new school I guess.
Too many positive BST transactions with too many members to list.
Shouldn't it be the other way around ?
Manipulation or not, I would sleep a heckuva lot better with a large "investment" in metals, than bitcoin, etc.
They say some folks are taking out a second mortgage just to get into the bitcoin action.
Coinfame,Kaelasdad,Type2,UNLVino,MICHAELDIXON
Justacommeman,tydye,78saen,123cents,blue62vette,Segoja,Nibanny
That is crazy. I couldn't sleep at night if I did that.
Ok, if someone is that (insert choice words here) then don't look for sympathy.
For those wondering "Who accepts it?" ,here are 100 of the daily growing list of companies that are already accepting cryptocurrency as payment:
1-800-FLOWERS – United States based online floral and gift retailer and distributor
4Chan – For premium services
A Class Limousine - Pick you up and drop you off at Newark (N.J.) Airport
Amazon – An online company that sells almost anything.
Apple’s App Store - Buy music and any app on the Apple AppStore with bitcoins
Badoo – Online dating network
BigFishGames – Games for PC, Mac and Smartphones (iPhone, Android, Windows)
Bing by Microsoft – 2nd search engine to Google
Bitcoin. Travel – a travel site that provides accommodation, apartments, attractions, bars, and beauty salons around the world
Bitcoincoffee – Buy your favorite coffee online
Bloomberg – Online newspaper
Braintree – Research firm
CEX – The trade-in chain has a shop in Glasgow, Scotland that accepts bitcoin
CheapAir – Travel booking site for airline tickets, car rentals, hotels
CoinMama: Buy Bitcoins with Credit Card
Crowdtilt - The fastest and easiest way to pool funds with family and friends
curryupnow - A total of 12 restaurants on the list of restaurants accept bitcoins in San Francisco Bay Area
CVS – A pharmacy shop
Dell - American privately owned multinational computer technology company
Dish Network - An American direct-broadcast satellite service provider
Dream Lover – Online relationship service
Etsy Vendors – Original art and Jewelry creations
Euro Pacific – A major precious metal dealer
Expedia. com – Online travel booking agency
ExpressVPN – High speed, ultra secure VPN network
EZTV – Torrents TV shows provider
Famsa – Mexico’s biggest retailer
Fancy - Discover amazing stuff, collect the things you love, buy it all in one place
Fight for the Future – Leading organization finding for Internet freedom
Fiverr – Get almost anything done for $5
Grass Hill Alpacas – A local farm in Haydenville, MA
Green Man Gaming - Popular digital game reseller
Grooveshark – Online music streaming service based in the United States
Helen’s Pizza - Jersey City, N.J., you can get a slice of pizza for 0.00339 bitcoin by pointing your phone at a sign next to the cash register
Home Depot - Office supplies store
i-Pmart – A Malaysian online mobile phone and electronic parts retailer
Intuit - an American software company that develops financial and tax preparation software and related services for small businesses, accountants and individuals.
Jeffersons Store - A street wear clothing store in Bergenfield, N.J
Kmart - Retail products store
Lionsgate Films - The production studio behind titles such as The Hunger Games and The Day After Tomorrow
LOT Polish Airlines – A worldwide airline based in Poland
Lumfile – Free cloud base file server – pay for premium services
Mexico’s Universidad de las Américas Puebla – A major university in Mexico
Microsoft – Software company
Mint - Mint pulls all your financial accounts into one place. Set a budget, track your goals and do more
MIT Coop Store - Massachusetts Institute of Technology student bookstore
MovieTickets – Online movie ticket exchange/retailer
mspinc – Respiratory medical equipment supplies store
Museum of the Coastal Bend - 2200 East Red River Street, Victoria, Texas 77901, USA
Namecheap - Domain name registrar
Naughty America - Adult entertainment provider
NCR Silver – Point of sales systems
Newegg – Online electronics retailer now uses bitpay to accept bitcoin as payment
OkCupid – Online dating site
Old Fitzroy – A pub in Sydney, Australia
One Shot Hotels – Spanish hotel chain
Overstock – A company that sells big ticket items at lower prices due to overstocking
PayPal / Ebay - Credit card / payment processor / Auction
Pembury Tavern – A pub in London, England
PizzaForCoins - Domino’s Pizza signed up – pay for their pizza with bitcons
PSP Mollie – Dutch Payment Service
Rakutan – A Japanese e-commerce giant
RE/MAX London - UK-based franchisee of the global real estate network
Reddit – You can buy premium features there with bitcoins
Sacramento Kings – Professional Basketball team out in Sacramental California (NBA)
San Jose Earthquakes – San Jose California Professional Soccer Team (MLS)
Save the Children - Global charity organization
Sears - Clothing and household products, electronic store
Seoclerks. com – Get SEO work done on your site cheap
SFU bookstore - Simon Fraser University in Vancouver, Canada
Shopify. com – An online store that allows anyone to sell their products
ShopJoy – An Australian online retailer that sells novelty and unique gifts
SimplePay - Nigeria’s most popular web and mobile-based wallet service
Square – Payment processor that help small businesses accept credit cards using iPhone, Android or iPad
State Republican Party – First State Republican Party to accept bitcoin donations
Straub Auto Repairs - 477 Warburton Ave, Hastings-on-Hudson, NY 10706 - (914) 478-1177
Stripe - San Francisco-based payments company
Subway – Eat fresh
Suntimes. com – Chicago based online newspaper
T-Mobile Poland – T-Mobile’s Poland-based mobile phone top-up company
Target – An American retailing company
TechCrunch. com – IT blog
Tesla – The car company
The Libertarian Party – United States political party
The Pink Cow – A diner in Tokyo, Japan
The Pirate Bay - BitTorrent directories
Tigerdirect – Major electronic online retailer
Victoria’s Secret – A lingerie outlet
Virgin Galactic - Richard Branson company that includes Virgin Mobile and Virgin Airline
WebJet – Online travel agency
Whole Foods – Organic food store (by purchasing gift card from Gyft)
with your money, for free!
Wikipedia - The Free Encyclopedia with 4 570 000+ article
WordPress – An online company that allows user to create free blogs
Yacht- base – Croatian yacht charter company
Zappos – Online retailer
Zynga – Mobile gaming
You can add JM Bullion and APMEX to your list.
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb
Bad transactions with : nobody to date
Goldman says Bitcoin is NOT taking money away from gold....
http://www.zerohedge.com/news/2017-12-12/bitcoin-really-stealing-demand-gold-here-goldmans-answer
I've been seeing more articles regarding individuals taking out mortgages, and maxing out credit cards, to buy Bitcoin.
Looks like full mania phase to me... but maybe this time it really IS different and those who are bold and daring will be well paid off....
"but maybe this time it really IS different and those who are bold and daring will be well paid off...."
It has so far.......
Too many positive BST transactions with too many members to list.
I don't think cryptocurrency would be happening (or at least would not be of such rabid interest) were people confident of a sound money system.
Here's a warning parable for coin collectors...
I bought 1,950 US dollars with one just last night.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
gold was not a investment phenomena in the 1840's - 50's. The price was set by the Gov't. I've never heard of anyone "speculating" on gold back then or even "investing" in gold back then.
As to bitcoin, I have no desire to put my money at risk.
bob
What do you want those stinky, worthless things for?
Knowledge is the enemy of fear
to buy silver
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Hopefully to purchase cryptos with.
Too many positive BST transactions with too many members to list.
Dollars still make a pretty darn good medium of exchange, eh?
Knowledge is the enemy of fear
Cause they're so plentiful. Must grow on trees.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
They should grow good at your house with all the manure you spread. Lol. Haha. Just kidding derryb.
Re: the OP. I doubt investors are "dumping" gold for bit coins.
Knowledge is the enemy of fear
Anyone remember this one. Timing is everything isn't it. I look at the price of AU and of Bitcoin now and their relative state on their charts. I'd sell every bitcoin and fill the van with ASE's. AG is a good choice as well to me because it held its value pretty well comparatively.
Ok, I might spend a little from the sale as well.
Never keep all your eggs in one basket. Five figures here, five figures there. Six figures there, 6 figures somewhere else.
I had to disagree with investors dumping gold to chase bitcoin ( cohodk) . A few guys have already sold me so they could “go for it.” And accordingly they’re being paid handsomely for their insight. I guess.
I thought about taking 1% of my net worth and buying bitcoin ... after learning about the technology, the fees, the best wallet ... a software wallet that is hackable, or a hardware wallet that seems much less so. I pondered it for a couple of days. Meanwhile bitcoin was whipsawing like a guppy fleeing a pencil. I never could talk myself into doing it. I bought some Riot Blockchain stock which has tanked since, but I'll give it a run.
I am just not convinced about ever doing this. And 1% of my net worth is still a nice chunk of change at my, ahem, advanced age. I'll continue my stock investments which, except for the one cited here, have done quite nicely, thank you.
Kind regards,
George
Did they sell ALL or a vast majority of their gold? Because thats what "dumping" means to me.
Knowledge is the enemy of fear
Yes, all of them dumped all their gold and put it all into bitcoin, because the new goldd is Code made of Wasted Energy stored as very long numbers.
Liberty: Parent of Science & Industry
But its not money yet until they take it out, right?
What pray tell is sound about bitcoin? What tangible asset is backing it up?
It's a long, complicated string of numbers, and there are a finite supply of those.
It takes a powerful computer a long time to dig up another such fancy number.
Sometimes the computers hit a bonus number and more coin comes out than usual.
It's fun and so far, so good!
Liberty: Parent of Science & Industry
Other ones have different numbers!
Today i heard about a crypto that comes with a cute kitty cat!
Liberty: Parent of Science & Industry